Mr. Speaker, I am pleased to rise and speak to Bill C-26. I have been waiting for it for awhile. We knew it was coming. It is always hard when the government controls the exact timing and we do not know it until it occurs so we have to spend quite a bit of preparation time putting other things aside.
Bill C-26 is in essence two bills. One deals with a variety of amendments to the Canada Transportation Act and the Railway Safety Act, and the other deals with the creation of a new act, the VIA Rail Canada act.
I will briefly touch on issues contained in the first section of the amendments. This area will be dealt with in more detail by my colleague from Port Moody—Coquitlam—Port Coquitlam, who is the Canadian Alliance chief opposition critic for transport. He graciously yielded the lead speaking position to me as the Alliance spokesman for VIA Rail, so that I might speak at length about the second part, the VIA Rail Canada act.
The portion of the bill that deals with amendments, and presumably improvements to the Canada Transportation Act, needs to look at many issues.
The minister said that this is part one, there will be a part two and a part three, and maybe some other parts thrown in there as well. I would suggest to him that there are things that must be looked at that this bill certainly does not address.
Today the federal government spends approximately $300 million annually on the national highways system. It takes approximately $5 billion from fuel taxes, $1 billion from British Columbia alone.
There is the new airlines security tax. There are a lot of alternatives to it. There are alternatives that I have touched on with the minister in committee and I hope he will continue to look at them. Small airports in my immediate region of Cranbrook, Castlegar and Penticton, at this point in time, still do not have basic x-ray and yet the people who get on board the aircraft there fly around all the security the minister claims to be spending millions upon millions of dollars on at the major airports. This flies them around that.
The minister might wish to suggest to the contrary but never has he suggested, I would hope, that he would put in CAT scans and incredible lengths of security at tiny airports. A chain is only as good as its weakest link so the minister should consider some significant alternatives to the security system. If he does not recall what I suggested before, I would be more than happy to give him a new outline.
The government must take a lot of the responsibility for the problems in our airline industry now, particularly with the national carrier, Air Canada. Air Canada, as it sits now, is the result of Air Canada taking over Canadian Airlines. There was an alternative. The alternative was for an outside company, the Onex Corporation, to take over both and put them together. That would have been highly preferable.
Let me tell the minister why it would have been preferable and the fundamental difference between what happened and what would have happened. The Onex Corporation brought in new market capital. Air Canada financed out of its existing debt structure, one that it is now reeling under. What prevented the Onex deal? It was federal government legislation that prevented Onex from owning more than 10% of the shares, a thing that the government with a mere wave of a hand could have extinguished but chose not to do it.
There are major airport fees. Up until the time the government went through the creation of national airports and the authorities to look after them, it lost hundreds of millions of dollars a year running airports. Now it is charging so many fees that it is a profit making venture for it. That is another form of taxation. It is just another way for the Liberals to sneak money from the taxpayer. We can be assured that if an airport operation has to pay excessive taxes to the government, so the government can reap a big profit, that cost has to be passed on to the public.
I have heard the minister mention that he is concerned about the financial viability of community airports. There are a couple of things he could do. He could increase the capital assistance allowance for those airports to ensure that they remain viable in terms of dealing with necessary capital projects, but there is another thing he could do.
At the time all the community airports were turned over to these communities, they were told that they have to provide a plan in terms of their fire response times.They were allowed, where the times were sufficient, to take the airport firefighting off the airport and handle it from their own firefighting resources. Then after that was all signed and turned over and the commitment was made by these communities, the government came up with CARS308, which now threatens to force these same municipalities to put dedicated firefighters on the airport itself, a cost that very few of these airports can sustain.
The minister can take care of that by simply saying one of two things: that he will do away with that, or; if he requires authorities to put in something that he told them they did not have to do at the time they took these airports over, that he will pay for it. If the minister is really worried about the financial viability for small airports, those are the two choices.
The minister mentioned the ports. Recently the minister announced how proud he was and what a great thing it was for the mighty Liberal government to put $172 million into port security over five years. I always get a chuckle when the government does things like this because this is the government that took away the ports police in the first place. It has taken away the entire mechanism that created port security and then says “Please give us a big round applause for putting just a tiny bit of it back in”.
Regarding freight rail, the government needs to do something to ensure that we have all aspects of good free movement of grain for prairie farmers so that we can ensure that grain does get moved to the ports, that farmers are not being penalized with the inability to sell their grain with back charges on demurrage and so on. Also we need to have a real plan to ensure that we move heavy freight onto rails and off of our highways.
These are but a few of the transportation concerns of the public and this bill does not meaningfully address these in any way.
What is the real reason for the VIA Rail Canada act? According to the Minister of Transport in his appearance before the Standing Committee on Transport on May 22, 2002, the minister said,
--I think that by establishing VIA under a statutory base, it will make it very much more difficult for governments in subsequent times to be somewhat arbitrary and capricious with the passenger rail system.
In essence what the minister is saying is that he is a rail buff and that he will not be around in this position forever. He wants to use his position as the minister to entrench VIA as a government operation to make it easier to shovel the taxpayer money to VIA and make it harder for any future minister or party to consider alternatives such as private sector operation of VIA Rail.
In truth Bill C-26 is really about taking steps to prevent VIA from ever being taken out of the minister's hands. Normally, when a government takes on a public operation, it starts out as a government department. The next step to make the operation more stand alone, is to make it a crown corporation. Then, if the government wants to make it truly independent of government, it sets it up under the Canada Business Corporations Act. This would make it virtually identical to any private sector corporation but with the government owning all the shares. That is the stage that VIA Rail is actually at now. What the minister wants to do is go to the trouble and expense of moving backwards. Is there a precedent for this? Not that I know of.
Also, one of the things the government is doing with this is under the concept of running rights and VIA Rail's access to go to the big freight companies and tell them when it wants to run, how often it wants to run and how much it wants to pay. If the big freight companies do not like that, what can they do? If the freight companies do not give VIA what it wants, as a government operation, it can go to the Canada Transportation Agency, another government operation, and tell it to decide what is fair. No conflict there at all.
What are the choices for VIA? One is the status quo but that is a poor alternative at best. It would mean the ongoing subsidy of half a million dollars a day to VIA Rail. It would mean that VIA continues to compete against the unsubsidized private sector transportation companies. Since the Liberal Party took office in 1993, it has given VIA $2,966,905,000. Basically to round it off, and it does not take very much added to it to that, $3 billion. We talk about the boondoggle of the firearms registry now approaching $1 billion. This is $3 billion of taxpayer money to help subsidize VIA Rail. I wonder how many of those taxpayers actually have ridden on VIA Rail.
Let me put that into perspective for individual ridings, the minister's riding, my riding and your riding, Mr. Speaker. In each riding in this country, on average, the taxpayers have sent to Ottawa $10 million of their money to the minister to hand over to VIA Rail. It costs VIA Rail almost $400 million to make a gross revenue of $250 million. It is amazing. The ongoing subsidy is about a half a million dollars a day, and we should keep that figure in mind. Ten million dollars to each riding and $3 billion nationally.
Canada's health care system is greatly underfunded and is in trouble. There is a lack of funding for post-secondary education. Our national highway system is deteriorating. Farmers are suffering and in need of a continuation of farm aid. There are many local funding problems in all our ridings. Just think what each riding could have done with that $10 million dollars of taxpayer money which the minister has given to VIA Rail since his party took office and what we could have done nationally with the $3 billion VIA Rail has spent.
The alternative is to sell off all VIA Rail, in essence a continuation of what was so successfully done when VIA Rail sold off its western rail excursion business. It would mean then that rail travel would be given the opportunity to reach its full potential, the way the Rocky Mountaineer Railtours company has done. It would mean an end to the immense and ongoing subsidization of those who travel by rail. It would mean that the innovation of private enterprise could be brought into to play to find new ways to enhance the viability of rail travel.
One question that must be asked on the concept of selling off VIA Rail is: Is there anyone out there who would take it?
When the current Minister of Transport took over his portfolio, he publicly stated he was interested in either privatizing or commercializing VIA Rail. Frankly, given the minister's background, I was a little surprised to hear him take this enlightened attitude. Of course it was too good to be true. Not too long after, the minister stated that such options were off the table because VIA Rail could never make money and, therefore, the private sector had no interest in it.
This flies in the face of later testimony the minister gave before the Standing Committee on Transport. On May 22, 2002, the minister, in response to my questioning, stated:
--there's no question that the private sector had interest. We sent out solicitations of interest and 40 companies were interested...it would have been possible to do something.
As to why he changed his mind, he stated:
--when I became minister, it was in an environment after program review where I never thought in my wildest dreams that I could get $400 million out of finance for VIA Rail.
Now we know what the latest plans of VIA Rail really are. They are the minister's wildest dreams.
Since that meeting, I have been trying to obtain a list of those 40 names so I could contact them and see what kind of ideas they had for operating VIA Rail.
First, I tried access to information. I was not hopeful because I had used this to try to obtain a variety of different information about VIA Rail and had always been refused by the government. Sure enough, this attempt proved futile as well.
Then, when I brought it up at a transport committee meeting, on November 7, 2002, asking that the clerk obtain a list from the minister's office and the committee contact these individuals and ask about their ideas for operating VIA Rail, the committee agreed. However over four months later, there was nothing from the minister's office.
In a past presentation to the Standing Committee on Transport, former VIA Rail CEO Terry Ivany also made clear VIA's intentions and new targets for competition. For western Canada, he stated:
In the west, we will continue to provide basic transportation service. But we will also establish new services. Western Canada represents the greatest tourism potential in Canada.
There is an enormous potential for passenger rail to take full advantage, and to contribute to the development of tourism. We will invest and expand services to focus on the fastest growing tourism market today.
In response to a letter from me, where I addressed a concern that VIA was trying to re-establish itself on the Calgary-Vancouver route, in competition with the very company they sold that route to, the minister implied that VIA was needed on the southern route. Specifically, his letter states:
As you may be aware, I asked VIA Rail to assess the feasibility of restoring certain discontinued passenger rail services in order to expand VIA's service across Canada. As part of its proposed initiatives for western Canada, VIA has submitted a proposal for the reinstatement of year-round service between Calgary and Vancouver.
What would be the purpose for VIA to expand its service in the west? There are only two possibilities: the minister's contention that it is necessary to provide passenger service to the travelling public or, the alternative, to go into competition with the existing tourism operator, Rocky Mountaineer Railtours.
The argument that VIA is needed to provide passenger service to the travelling public is absolutely absurd. Currently a round trip from Edmonton to Vancouver by aircraft costs $287.22, which includes $41.22 in federal government taxes and surcharges of $55. It takes about an hour and a half each way. The minister is telling me that the airlines should be more visible in what they do. That is the full price. The VIA Rail fare is $393.76, and these are the lowest fares, which is net after a subsidy of nearly half a million dollars a day that VIA receives, and it takes in a full day in each direction. The Canadian taxpayers shell out half a million dollars a day so that VIA can operate a service that takes 16 times as long and costs 37% more. Yet the minister would have us believe that we need more of this kind of service. We do not.
Also, the minister talked briefly at the end of his speech today about the environment. Unlike the environmental benefit of moving heavy freight by rail, passenger rail service is the least environmentally friendly form of transportation. It uses considerably more fuel per passenger on the Edmonton to Vancouver trip than an aircraft. What is the justification of expanding this slow, expensive and environmentally unfriendly operation as a passenger service? There is not one.
That leaves VIA looking at going into competition with the existing tourism operator, the Rocky Mountaineer Railtours. The Rocky Mountaineer was a rail excursion service initiated by VIA in the 1980s. Like most of what VIA does, it lost money. When the Conservative government ordered VIA to dispose of this service and concentrate on their core responsibility, it carried less than 5,000 passengers annually.
The private sector investors who purchased the business from VIA paid millions of dollars to buy the business rights and rolling stock from VIA, to buy new cars and refurbish them, to hire and train their staff to the high standard, which I think the public expects on that kind of service, and to develop an international advertising strategy that would bring large amounts of foreign tourism into Canada every year. Business has grown tremendously. This is a private sector success story.
In essence, the government went to the private sector and said, “We want you to take over this operation, invest large amounts of private capital, end the drain of taxpayer funding, create jobs, boost the economy and pay taxes”.
The Rocky Mountaineer did all those things and now the minister, who as a self-confessed rail buff, should be heaping rewards on this company. Instead he is looking at letting the taxpayer funded government railway go back into competition with the business it could not run and sold. I guess he feels now that Peter Armstrong and the hard working people at the Rocky Mountaineer have built the industry up, his personal government rail line should be in a position to reap the benefits and the profits from all the work that those people have done. Anyone with a conscience or sense of what is right will see that this is a travesty, no matter what his or her political party.
We frequently talk about the need to involve the private sector in more investments in this country. We look to it to boost the economy and participate in public-private partnerships. Rocky Mountaineer Railtours has done what was asked of it in spades, and its reward is to have the government talk about going into competition with it using the taxpayer money to give the government the advantage. The whole private sector should watch this bill very closely. If VIA is allowed to further compete with the private sector, it is a warning to the private sector never to trust or co-operate with government again.
The minister says that there have been all kinds of consultations in the drafting of this bill. I would like to know who he talked to in western Canada on this issue. It certainly was not the chambers throughout the rail route in British Columbia, from Vancouver all the way to Calgary. It was not the boards of trade. It was not the councils along the route. It was not the provincial government in both B.C. and Alberta, all which oppose VIA Rail going back into competition with the Rocky Mountaineer.
Again referring to the testimony of former VIA CEO Terry Ivany, for eastern Canada, he stated:
In the (Quebec-Windsor) corridor, we will provide vastly expanded services--new express trains, more frequencies, shorter trip times, convenient schedules--all designed to fully capitalize on the business travel, cross border travel and tourism markets.
Given VIA's projected debt free startup status and its likely ongoing subsidization from the federal government, VIA would be able to further erode the customer base of the private transportation sector.
In a recent Maclean's interview, the Minister of Transport stated:
...congestion on the roads and security delays at airports make train travel more attractive.
This is the minister who takes $5 billion in fuel excise taxes and gives back only $300 million. Congestion on the roads indeed. No wonder. He could probably congest them a little more if he only gave us $200 million of that $5 billion.
With regard to security delays at airports, who put those in place? Who is collecting the airport security fee with no accountability for it and creating chaos at the airports? He is the very person who put that into place. He could have done something much more streamlined than what we have. We do not see it happening. The minister then says that we have to turn to rail, which I happen to be a buff of, because there is congestion on the roads and delays at the airports. What an interesting statement to make when he is the very person responsible for that congestion and those delays.
As I said, Ottawa collects about $5 billion a year in fuel taxes and spends only 6% on highway programs. At airports, the government has had over a year and a half to organize efficient security measures. All the flying public has received is yet another tax.
In 1995, VIA Rail employees went on strike. When the strike ended, VIA decided that it needed to take business away from the bus lines so it cut its already hugely subsidized fares by another 40%. VIA offered a round trip fare on VIA 1, its first class service, between Toronto and Kingston for under $100. That fare included before dinner drinks, a deluxe menu to choose dinner from, wine with dinner and drinks after dinner in both directions. It is questionable if the fare even covered the cost of the food and drinks for many people. How is an unsubsidized, taxpaying company supposed to compete with that?
The Ontario Motor Coach Association points out that Toronto desperately needs a new $20 million bus terminal but the industry cannot make that kind of investment if it thinks the government is about to expand a highly subsidized passenger rail system through that same market.
Many companies feeling the current financial squeeze have cut back on their discretionary spending but not VIA. Given that VIA is subsidized by almost $500,000 a day, how can it justify funding a private film production in the amount of $1 million? You remember that one, Mr. Speaker. It was the one where the government had to come up with an extra $1 million for VIA Rail and paid Lafleur Communications Marketing a commission of $120,000 to deliver the cheque to VIA. Of course Lafleur Communications Marketing also delivered a pretty hefty cheque back to the Liberal Party as a contribution.
The concept of privatizing VIA Rail does leave a question of service provision to communities where VIA Rail operations provide the only reasonable transportation service. Although these situations are limited, they are a concern that must be addressed. Continuation of service in these areas can be ensured through a variety of measures, and the Canadian Alliance is fully prepared to work to find the most viable solution to ensure continued service in the most cost effective manner. Continuing the government operation of VIA nationally is not the most cost effective manner. It is the least cost effective, along with all the other problems that I have already outlined.
As I mentioned earlier, I have been working through the Standing Committee on Transport to try and obtain a list of names the minister advised were interested in operating VIA. The committee had indicated a will to investigate the feasibility of having the private sector take over the operation of VIA. This was underway before the minister tabled Bill C-26 in the House. If the minister is really interested in the financial and transportation interests of the Canadian taxpayer, he will agree to allow the transport committee to complete a feasibility study of having the private sector take over the operation of VIA. I believe that a good case has already been made for this.
At the beginning of the minister's earlier on he talked in glowing terms about what an incredible job his government had done on privatization. Airports, ports, CN Rail, the air navigation system, all of which he said were good moves, good for the country and good for the taxpayer, and that these things were thriving. Why then does he not take one more step and look at it with VIA Rail as well?
The minister is a self-professed rail buff. If this is his only reason for keeping VIA under his control and he will agree to relinquish that control, I will personally offer to purchase for him the best model rail set imaginable. I realize that it is not the same as playing with a full size train but the taxpayers of this country will be forever grateful to him.